CHICAGO (WMBD) — Illinois Gov. JB Pritzker announced a tax relief and rebate program aiming to give Illinoisans some financial relief.
The Illinois Family Relief Plan will provide $1.83 billion in financial relief for families across the state.
The plan includes several tax holidays, meaning a temporary cut in taxes, including:
- Groceries: The state’s 1% sales tax on groceries will be suspended July 1 through June 30, 2023, saving consumers $400 million.
- Gas: The state’s normally scheduled increase in the motor fuel tax will be delayed from July 1 to January 2023, saving consumers $70 million.
- School supplies: Sales taxes for qualified clothing and school-related items will be reduced from 6.25% to 1.25% for a 10-day window from August 5 to 14, saving consumers $50 million. Items include qualifying clothing and footwear with a retail selling price of less than $125 per item. Eligible school supplies are not subject to the $125 threshold.
Moreover, the plan permanently increases the state’s earned income credit from 18% to 20% of the federal credit, while expanding the number of households covered, thereby putting an additional $100 million per year back into the pockets of working families.
Illinois is also providing homeowners with property tax rebates in the amount of the property tax credit they qualify for on their 2021 Illinois tax returns, up to a maximum of $300. Rebates are not available for taxpayers who have an adjusted gross income exceeding $500,000 for returns filed jointly with one spouse or $250,000 for all other returns.
Those who earned less than $200,000 in 2021 will also receive $50 income tax rebates. Couples filing jointly who earned less than $400,000 in 2021 will receive $100. Each dependent a taxpayer claims on their taxes will receive a $100 payment, up to three dependents.
Approximately 6.2 million taxpayers may qualify for income and property tax rebates under the Family Relief Plan based on information on their 2021 tax returns. Comptroller Susanna Mendoza will issue the rebates, and checks will begin to be cut the week of Sept. 12. Once the rollout begins, the rebate checks will be distributed approximately eight weeks later.
Those benefits begin Friday, July 1.